Equity shareholders are called:

1

(a)

Owners of the company

(b)

Partners of the company

(c)

Executives of the company

(d)

Guardian of the company

The term 'redeemable' is used for

1

(a)

Preference shares

(b)

Commercial paper

(c)

Equity shares

(d)

Public deposits

Funds required for purchasing current assets is an example of

1

(a)

Fixed capital requirement

(b)

Ploughing back of profits

(c)

Working capital requirement

(d)

Lease financing

ADRs are issued in

1

(a)

Canada

(b)

China

(c)

India

(d)

USA

Public deposits are the deposits that are raised directly from

1

(a)

The public

(b)

The directors

(c)

The auditors

(d)

The owners

Under the lease agreement, the lessee gets the right to

1

(a)

Share profits earned by the lessor

(b)

Participate in the management of the organization

(c)

Use the asset for a specified period

(d)

Sell the assets

Debentures represent

1

(a)

Fixed capital of the company

(b)

Permanent capital of the company

(c)

Fluctuating capital of the company

(d)

Loan capital of the company

Under the factoring arrangement, the factor

1

(a)

Produces and distributes the goods or services

(b)

Makes the payment on behalf of the client

(c)

Collects the client's debt or account receivables

(d)

Transfer the goods from one place to another

The maturity period of a commercial paper usually ranges from

1

(a)

20 to 40 days

(b)

60 to 90 days

(c)

120 to 365 days

(d)

90 to 364 days

Internal sources of capital are those that are

1

(a)

Generated through outsiders such as suppliers

(b)

Generated through loans from commercial banks

(c)

Generated through issue of shares

(d)

Generated within the business

List sources of raising long-term and short-term finance.

3

(a)

What is the difference between internal and external sources of raising funds? Explain.

3

(a)

What preferential rights are enjoyed by preference shareholders? Explain.

3

(a)

Name any three special financial institutions and state their objectives.

3

(a)

What is the difference between GDR and ADR? Explain.

3

(a)

Discuss the sources from which a large industrial enterprise can raise capital for financing modernisation and expansion.

5

(a)

What advantage does issue of debentures provide over the issue of equity shares?

5

(a)

State the merits and demerits of public deposits and retained earnings as methods of business finance.

5

(a)

Discuss the financial instruments used in international financing.

5

(a)

What is a commercial paper? What are its advantages and limitations?

5

(a)